Quote:
Originally Posted by blankall
Pretty simple to avoid taxes. Set up a personal corporation. You pay 11-13% tax on the money you keep in the corporation. This rate is lowered with write offs. You can also invest this money into passive investments while in corporate solution, and the profits from these investments are also sheltered.
Structure your finances in a way that any money you take out is minimal, and use write offs for things like home officers, employment use vehicles, business dinners, etc... To keep that tax minimal.
The more you make, the higher proportion of money that stays in corporate solution, and the lower the effective tax rate.
Things like capital gains exemptions, a lack of inheritance tax, trusts, etc. ensure the rich stay rich.
The only real thing the government has done to impede this is getting rid of income splitting.
Edit: disclaimer... Do not do this before talking to a tax lawyer or accountant.
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This is so wrongingly wrong, it's embarrassingly stupid.
First off, any money you put into the corp will be taxed as earnings. You can only invest earnings, not revenue.
Then, you're going to be taxed on dividends and cap gains because the money isn't tax sheltered.
Then, when you want to draw that money out, it's going to be either income or dividends for you. Either way, the tax rate is going to be just like you got a goddamned T4. BTW, if you pay as income, you have to pay BOTH employer and employee CPP. For dividends, since personal corps NEVER quality for special dividend treatment, the dividend withdrawal amount gets marked up massively, negating the lower dividend tax rates.
So if you want to save money in the absolutely worst way, go ahead and do this.
Your punishment is to go hide in a corner and wear a dunce cap.